Negotiating Your Financial Aid Package

When it comes to financial aid packages, the first reaction of most  families is it's not enough. Is it possible to negotiate your financial  aid package?

The short answer is yes. However, not all colleges have the same negotiating capabilities.

Which colleges negotiate?
Colleges that rely heavily on Federal funding do not have much flexibility to negotiate. There are strict guidelines when awarding Federal dollars, which are given based on need as determined by the FAFSA. For this reason, most public institutions are not in a position to negotiate.

Private colleges often get funding for their financial aid programs from sources outside of Federal dollars, and so, they are more likely to increase a financial aid award. However, private colleges are also subject to the same rules and regulations as public institutions regarding the use of Federal aid.

If a private college includes Federal money as part of a student's financial aid package, the total aid from all sources (including the college's own funds) cannot exceed the demonstrated need as determined by the FAFSA.

When do colleges negotiate?
In general, there are two scenarios in which colleges are willing to negotiate: colleges that did not meet 100 percent of your demonstrated need, and colleges willing to substitute their own aid for Federal funds.  

How should you negotiate for more financial aid?
There is no set way to start this conversation with your college financial aid office. There are, however, some general guidelines:

• Make sure the information you provided on the FAFSA and any other financial aid document submitted to the college is accurate. If you overstated your annual income or assets this could have reduced your eligibility for aid. If you find any errors, call the financial aid office and file a corrected FAFSA form.



• Tell the college financial aid office about any special circumstances. While there are strict regulations, the financial aid office does have limited discretion when handling special circumstances such as major changes in a family's financial situation, loss of employment or if a family experiences extraordinary expenses after the FAFSA has been filed.



• Share competing financial aid packages with the college. If you have a better financial aid offer from a comparable college (in terms of cost and quality) share it with the college. Let them know what the competition is offering.



• Tell the college what you are expecting to get. Have a figure in mind when negotiating. Tell the college what that amount is and how you arrived at that amount.

Remember, those colleges that are willing to negotiate do not advertise that fact. The only way you will know if a college is willing to negotiate is to ask. Even if the college cannot help, you are no worse off than before. Just be polite and professional when negotiating. Good Luck!